Third International Roundtable on Managing Results for Development

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Third International Roundtable on Managing
Results for Development

• Building Public Finance Systems to Achieve
  Planned Results Building Capacity and Measuring
  Change

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Increasing Recognition

• Importance of a Government owned and led strategy
  to reform planning and budgeting in an integrated
  way.
• But must be genuine
• Realistic timescales
• Politically feasible
• Fragmented donor support can be part of the
  problem.
• Fragmented
• Unsequenced
• No buy-in
• Unrealistic politically

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The Strengthened Approach to supporting PFM
reforms

1. A country-led reform program including a PFM
   reform strategy and action plan
2. A donor coordinated program of support (emerging
   use of multi-donor funds)
3. A common framework for measuring and monitoring
   results over time The PFM Performance
   Measurement Framework

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1. A country-led PFM reform program
The government-led reform program
No blueprint for the government reform program,
but some common defining features

• The government reform program reflects country
  priorities, and is not driven by the donors
  agenda.
• The overall direction and responsibility for the
  reform program is integrated within the
  government structures.

• Planning and undertaking diagnostic work over
  time.
• Designing reform measures and integrating them in
  the reform program.
• Implementing reforms
• Monitoring of progress over time.

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But What Sort of Strategy Is Necessary to bring
Planning and Budgeting Together?

• Trying to blue print reform from beginning to end
  is not real world or sustainable.
• Distinguish between
• A broad overarching framework
• More detailed planning on the next step
• Target and measure progress in terms of what the
  integrated planning and public finance system can
  achieve, not its technical detail.
• Deal with the whole of the planning/public
  financial management cycle.

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Example of an Overarching Strategy - Cambodia
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Pillars To Support Stages in Bringing Planning
and Budgeting Together- Russian Example
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Building Capacity

• Build for capacity rather than simply train.
• Address immediate tasks while also building for
  the future.
• Create the demand rather than push the supply
• Avoid change overload

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Aligning Technical and Capacity Development
Cambodian Example
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Organisational Change Some Country Based
Examples of Issues that Arise

• Face up to the barriers (Kyrgizstan and Russia)
• Create new units where necessary (Vietnam and
  Ghana)
• But dont build reform outside operational
  management (Cambodia and Indonesia)
• Address the need to manage cross cutting issues
  (All)

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Motivation - Winning Support

• All the experience is that broadly based support
  is essential.
• From politicians
• Get them involved in the Steering arrangements
• Let them know what is in it for them
• From other central Ministries
• Seek to align and support strategies that they
  may have
• Neutralise any threats (for example for any
  MOEs)
• From those who must work within the PFM system
• Use the measures of change to help them to
  understand what MOF is trying to do and what it
  will do to help them
• Make it clear what they may gain, but that they
  will be dependent on their response to reform and
  their performance
• From the public
• Develop media campaigns
• Shout the successes

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Some Different Types of Motivational Measures
Managerial freedoms and flexibility
Personal recognition and reward
Providing additional resources
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Some Examples of Counties that have Experimented
with Motivational Measures in their PFM Reforms

• Consolidate donor related pay supplements
  ( Cambodia and Tanzania)
• Give access to management freedoms and
  flexibilities based on proven performance (Many)
• Reward spending bodies who respond to reforms
  with additional resources (Russia)
• Anticipate potential perverse incentives to
  resist reform and develop counter measures
  (Cambodia)

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3. The PFM Performance Measurement Framework

• A standard set of high level indicators
• Widely accepted but limited in number
• Broad measures of performance relative to key PFM
  system characteristics
• Enabling credible monitoring of performance and
  progress over time

• A PFM Performance Report
• Integrative, narrative report based on the
  indicators and assessing performance based on
  observable, empirical evidence.
• Updated periodically, depending on country
  circumstances and operational needs
• Contributing to coordinated assessment
• Feeds into government-donor policy dialogue